Capital & Counties Properties Plc £175m US Private Placement debt for Covent Garden (7451K)

TIDMCAPC

RNS Number : 7451K

Capital & Counties Properties Plc

26 September 2016

26 September 2016

CAPITAL & COUNTIES PROPERTIES PLC ("Capco")

GBP175 million US Private Placement debt for Covent Garden

Capco announces that Covent Garden Group Holdings Limited, the holding company for Capco's Covent Garden assets and a wholly owned subsidiary of Capco, has signed an agreement with five US institutional investors for a private placement of GBP175 million 10 year and 12 year senior unsecured notes.

The issue consists of two tranches: GBP125 million at a fixed coupon of 2.28% due 2026 and GBP50 million at a fixed coupon of 2.37% due 2028. The proceeds will strengthen the Group's capital structure and provide greater financial flexibility and resources. Closing and funding of the transaction will occur in November 2016. The new issue will share the same financial covenants as the existing GBP150 million private placement notes issued in December 2014 and the GBP705 million bank revolving credit facility signed in December 2015. Proceeds of the issue will be used initially to repay the bank facility.

Soumen Das, Chief Financial Officer of Capco, commented: "We are delighted with our second US Private Placement issue and the support we have received from our investors. We have benefitted from the all-time low gilt rates to lock in long-term debt which extends Capco's weighted average debt maturity to 5.7 years, and increases our available facilities by GBP175 million at a highly attractive weighted average coupon of 2.3%."

-ENDS-

Enquiries

Capital & Counties Properties PLC:

 
Ian Hawksworth     Chief Executive                [phone] 
Soumen Das         Chief Financial Officer        [phone] 
                   Director of IR & Investment, 
Michelle McGrath    Covent Garden                 [phone] 
 

Media enquiries:

 
                 Director of Communications 
Sarah Hagan       & Marketing                 [phone] 
UK: Tulchan      Susanna Voyle                [phone] 
SA: Instinctif   Frederic Cornet              [phone] 
 

Barclays Capital Inc.:

 
Akshay Shah   Managing Director   [phone] 
 

Notes to Editors

About Capital & Counties Properties PLC (Capco):

Capital & Counties Properties PLC is one of the largest investment and development property companies that specialises in central London real estate and is a constituent of the FTSE-250 Index. Capco holds assets valued at GBP3.6 billion (as at 30 June 2016) in two landmark London estates: Covent Garden, which has assets valued at GBP2.1 billion including the historic Market Building, and Earls Court Properties including the Empress State Building together with the Venues business amounting to aggregate property assets of GBP1.5 billion. The company is listed on the London Stock Exchange and the Johannesburg Stock Exchange.

www.capitalandcounties.com

This information is provided by RNS

The company news service from the London Stock Exchange

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September 26, 2016 02:00 ET (06:00 GMT)